X-Rite Announces First Quarter Financial Results
GRANDVILLE, Mich.--April 18, 2002--X-Rite, Incorporated , a leading global provider of precision devices, systems and processes that measure color, light and shape, today announced its financial results for the first quarter ended March 29, 2002.The Company reported first quarter net sales of $21.0 million, 17.4 percent less than last year's first quarter of $25.4 million. The Company posted a net loss of $259 thousand, or 1 cent per share compared with net income of $2.4 million, or 11 cents per share for the same period last year.
Commenting on the quarter, Rich Cook, X-Rite, Incorporated's chief executive officer, said, "Revenue increased 4.1 percent over the fourth quarter of 2001 from $20.1 million, and losses were reduced to 259 thousand from $2.7 million. These both display positive growth after a challenging year in 2001. The markets we serve are starting to show signs of recovery, and we have received solid affirmation from our customers and partners that X-Rite solutions are a strategic part of their future. Capital spending in this very unpredictable global economy continues to be weak, but we are confident our sales and marketing efforts will be rewarded."
The Company recently announced that it played a major part in the changes The Wall Street Journal made in adding color to its front page. While our involvement in the newspaper industry is not new, this change by The Journal highlighted the value we bring to the newsprint process.
Market Highlights
| -- | Coatings -- (industrial, automotive paints, retail paint-matching) -- The manufacturing recession is showing signs of recovery, and we are seeing a slow rebound in our industrial markets. We are particularly pleased with renewed strength in our retail paint-matching customers who are reporting growth, expanding with new locations, and adding/upgrading paint-matching capabilities. We are providing retailers with new products like ColorDesigner(TM) which began shipping this quarter. This new product includes features such as "Color Harmony," "Paint My Room" and "Paint Problem Solver" making the paint business even more profitable for our customers. |
| -- | Graphic Arts -- (digital imaging, printing, photo) -- Driven by advertising revenue, these markets are stable, and beginning to evidence some growth. We continue to provide product enhancements and build strong partner relationships to protect our "preferred vendor" position in these competitive business areas. |
| -- | Laboratory -- (laboratory instruments) -- Sales of our custom test and measurement equipment are not yet showing signs of recovery particularly in the telecom and semiconductor markets. We believe a return to double digit growth in this portion of our business is tied to capital goods spending trends. |
| -- | Biodiagnostics -- (x-ray diagnostics, dental vision system) -- The launch of our proprietary dental system, ShadeVision(TM), continues to be central to this growth area of our business. During the quarter, we have received strong dental laboratory and practitioner endorsements bolstering our market penetration. We believe revenue will grow sequentially at a faster pace throughout the year. |
Conference Call
The company will conduct a live audio webcast discussing its first quarter results on Thursday, April 18, 2002 at 11:00 a.m. Eastern time. The call will be co-hosted by Rich Cook, the company's chief executive officer, Michael C. Ferrara, the company's president and Duane Kluting, its chief financial officer. To access this webcast, as well as all future webcasts, use the X-Rite corporate website. Log on to http://www.x-rite.com, go to the Investor Relations page and click on the conference call link for the webcast. In addition, an archived version of the webcast conference call will be available on X-Rite's website shortly after the live broadcast.
About X-Rite
X-Rite, Incorporated is a world-leader in producing precision measurement devices, systems, and processes that enhance the measurement of color, light and shape. Many large, multi-national firms use X-Rite's products and services for a variety of applications in areas as diverse as digital imaging, printing, coatings, bio-diagnostics, telecom and electronics. Sales and service offices throughout Europe, Asia and the Americas support the Company's North American and European manufacturing, research & development facilities.
For more information, contact X-Rite, Incorporated: 3100 44th Street, S.W., Grandville, Mich., 49418, USA; Telephone (616) 534-7663; Fax (616) 534-1466; Website: http://www.x-rite.com.
Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements, due to a variety of factors, some of which may be beyond the control of the Company. Factors that could cause such differences include the Company's ability to improve operations and realize cost savings, competitive and general economic conditions, ability to access into new markets, and other risks described in the Company's filings with the Securities & Exchange Commission.
Consolidated Financial Highlights
(Unaudited - in thousands except EPS)
Q1 Q4 Q3 Q2 Q1
2002 2001 2001 2001 2001
-------- -------- -------- -------- --------
Net Sales $ 20,956 $ 20,130 $ 21,739 $ 24,429 $ 25,360
Gross Profit 12,284 11,781 13,579 15,448 16,263
Gross Profit Percent 58.6% 58.5% 62.5% 63.2% 64.1%
Selling and Marketing 5,734 5,628 5,871 5,818 5,914
General and
Administrative 3,663 4,022 4,218 3,690 3,450
R&D and Engineering 3,211 3,604 3,827 4,013 4,055
Restructuring - - 862 - -
Other Income (Expense) (8) (1,182) 245 398 373
Pre-tax Income (Loss) (332) (2,655) (954) 2,325 3,217
Net Income (Loss) $ (259) $ (2,655) $ 404 $ 1,755 $ 2,429
Earnings (Loss)
Per Share
Basic $ (0.01) $ (0.12) $ 0.02 $ 0.08 $ 0.11
Diluted $ (0.01) $ (0.12) $ 0.02 $ 0.08 $ 0.11
Average Shares
Outstanding
Basic 20,198 21,336 21,478 21,403 21,362
Diluted 20,198 21,336 21,909 21,740 21,693
Cash and Investments $ 8,245 $ 24,831 $ 26,192 $ 24,583 $ 24,835
Accounts Receivable 13,563 12,048 13,640 17,489 17,546
Inventory 14,425 15,235 15,721 15,805 15,545
Other Current Assets 8,043 7,240 10,083 9,218 9,772
Non-Current Assets 63,528 59,598 58,392 56,822 54,135
-------- -------- -------- -------- --------
Total Assets 107,804 118,952 124,028 123,917 121,833
Liabilities 8,013 7,223 7,300 7,611 6,804
Long-Term Debt - - - - -
-------- -------- -------- -------- --------
Total Liabilities 8,013 7,223 7,300 7,611 6,804
Permanent and
Temporary
Shareholders'
Equity $ 99,791 $111,729 $116,728 $116,306 $115,029
Capital Expenditures $ 822 $ 972 $ 1,199 $ 1,895 $ 906
Depreciation and
Amortization $ 1,447 $ 1,548 $ 1,573 $ 1,544 $ 1,503
Sales Outside
North America 38.5% 40.1% 39.0% 35.2% 36.7%
Sales By Market
Served (% of Total)
Coatings 38.6% 36.2% 32.2% 31.3% 35.0%
Graphic Arts 41.0% 41.4% 46.2% 46.9% 44.4%
Bio-diagnostics 6.4% 6.6% 5.1% 4.7% 5.3%
Laboratory 14.0% 15.8% 16.5% 17.1% 15.3%
Consolidated Financial Highlights, continued
(In thousands except EPS)
Quarter Ended
-----------------------
March 30 March 31
2002 2001
----------- -----------
(Unaudited) (Unaudited)
Net Sales $ 20,956 $ 25,360
Gross Profit 12,284 16,263
Gross Profit Percent 58.6% 64.1%
Selling and Marketing 5,734 5,914
General and Administrative 3,663 3,450
R&D and Engineering 3,211 4,055
Other Income (Expense) (8) 373
Pre-Tax Income (Loss) (332) 3,217
Net Income (Loss) $ (259) $ 2,429
Earnings (Loss) Per Share
Basic $ (0.01) $ 0.11
Diluted $ (0.01) $ 0.11
Average Shares Outstanding
Basic 20,198 21,362
Diluted 20,198 21,693